Dear Editor
With federal budget preparations underway, there is a lot of debate about the best ways to support small and medium sized businesses and in turn, encourage sustained economic growth in Canada. Credit unions have proposed a solid approach, which would trigger an additional $700 million in lending for local businesses, individuals, homeowners and farmers across Canada.
For the 2015 federal budget, the credit union system is proposing the federal government implement a capital growth tax credit that will stimulate approximately $700 million in new lending, including right here in Saskatchewan. Credit unions are different from banks and they should not be taxed like banks. Credit unions are paying higher taxes as a result of a 2013 budget decision to phase out a 40-year-old tax measure that recognized the limited ability of credit unions to generate capital and the preferential tax treatment banks enjoy. Credit unions cannot issue shares on capital markets like banks. Implementing the capital growth tax credit would provide a competitive balance between credit unions and the big banks.
For nearly 80 years Saskatchewan credit unions have been an integral part of the economic and social fabric of our province. They are locally owned and controlled. In Saskatchewan, credit unions serve more than 490,000 members and provide financial services to nearly 50 per cent of small to medium size businesses. Credit union members strive to improve the quality of life in their communities. Last year, Saskatchewan credit unions collectively provided an additional $6.2 million by donating volunteer time, in-kind and cash contributions to local communities.
We can all contribute to sustaining the growth of Saskatchewan's diversified economy. Ensure Finance Minister Joe Oliver and your member of parliament know your credit union matters by visiting www.myCUmatters.ca .
Dean Walde, President
Keith Nixon, CEO
SaskCentral
